Maruti: Policy stability key to India's manufacturing future

India's auto-component export is grappling with a "major challenge" as nearly 30 per cent of shipments to the United States (US) now face steep tariffs of 25-50 per cent, said Hisashi Takeuchi, managing director and chief executive officer, Maruti Suzuki India, on Friday, adding that the country should continue demonstrating "policy stability and predictability" to strengthen its long-term manufacturing competitiveness.

- DEEPAK PATEL

In his speech at the annual session of the Automotive Component Manufacturers Association of India (Acma), Takeuchi said the US tariffs had put pressure on suppliers, given that a significant share of India's component export depended on that market.

He said New Delhi and Washington were in discussion and "the government is very sensitive to this issue and hopefully some solution will be found out".

He added that adversity could be turned into opportunity, recalling Prime Minister Narendra Modi's words: "Aapda mei avsar" (finding opportunity in adversity).

"Almost 30 per cent of auto-component exports are to the US, and about half of that is facing a duty of 25 per cent and the other half 50 per cent. That poses a major challenge," Takeuchi said.